Walmart (WMT.N) announced that it may introduce a platform that will employ social media influencers to aid the American multinational retail corporation, as well as its 100,000 third-party vendors, in promoting their products and services online.
Walmart is currently using influencers to advertise its groceries, clothing, and Walmart+ loyalty program on platforms like Instagram, YouTube, and TikTok. The influencers Walmart aims to have represented its company are those who maintain larger bases and promote items by sharing affiliate links.
When a customer clicks on the link and makes a purchase, the influencer then receives a commission in exchange for the promotion. It seems as though influencer marketing is a market just beginning to get untapped.
With major companies such as Amazon having applied the ‘influencer’ strategy since 2017, Walmart expects record growth.
According to July 27 documents verified by Reuters, Walmart registered trademarks for “Walmart Creator” and “Walmart Creator Collective,” which offer social media consultancy and “the promotion of goods and services of others through influencers.”
According to Danielle Wiley, CEO of influencer marketing firm Sway Group, many influencers rely on Walmart for income through “affiliate dollars. Any way the company could make this easier for influencers and facilitate content creation will benefit both sides.”
At the end of 2022, Walmart expects to have over 240 million items available online. On Tuesday, the company reported a 12% increase in second-quarter e-commerce sales in the company’s US sector.
Walmart noted during its fourth-quarter results call in February that Walmart Connect reported $2 billion in sales for its advertising unit during the previous fiscal year. It also said that expanding its e-commerce business, particularly its delivery-subscription service Walmart +, has been a focus, and the company has ambitions to introduce additional options for sellers. During its February earnings call.
Walmart’s global advertising division, which consists of Walmart Connect and the advertisements for its India-based e-commerce startup Flipkart, increased by about 30% from the previous year. During its earnings call on Tuesday, the company reported that the number of active advertisers had risen by 121% since last year.
On the Tuesday earnings call, Walmart CEO Doug McMillon spoke of an exciting future for the multinational retail corporation: “The relationship between digital growth, marketplace growth, advertising is something that we’re trying to take advantage of.”